Non-residents for tax purpose are required to pay income tax on Australia sourced income whether or not they are actually present in Australia. Interest income, unfranked dividends and royalties are not subject to income tax.
The tax rates are different to the resident tax rates. Non-residents are not entitled to the personal income tax-free threshold or to claim particular tax offsets or tax rebates that are available to residents. On the other hand, they are not required to pay the Medicare levy. It should be noted that residency status for tax purposes is not the same as for immigration purpose.
The following rates for 2014-2015 apply form 1 July 2014:
Taxable income Tax on this income
0 – $80,000 32.5c for each $1
$80,001 – $180,000 $26,000 plus 37c for each $1 over $80,000
$180,001 and over $63,000 plus 45c for each $1 over $180,000
Additionally, the Temporary Budget Repair Levy at a rate of 2% is imposed on that part of a person’s taxable income which exceeds $180,000.
There are special capital gains tax (CGT) rules that apply if you are a foreign resident or if you become, or cease being, an Australian resident. The law has been amended to remove or reduce the 50% discount on capital gains made after 8 May 2012 by non-resident individuals on taxable Australian property.
The Quinn Group can lodge your tax return on your behalf and ensure you are receiving all eligible deductions. Contact us today for a quote by calling 02 9223 9166 or email us with an enquiry here.